News & Views

Markets began March with a firmer tone, as improving risk appetite supported UK equities and a rebound in technology shares, even as geopolitical tensions in the Middle East introduced fresh uncertainty. Alongside steady disinflation trends in the US and renewed volatility in commodity markets, this week’s developments highlight the delicate balance between economic resilience and evolving global risks.

Global markets moved cautiously higher in mid-January as investors weighed resilient economic data against persistent inflation, policy uncertainty and geopolitical risks. UK equities outperformed, while US gains were modest and uneven, with technology stocks lagging. Inflation dynamics, central-bank independence and safe-haven demand remained in focus, while upcoming inflation data and business surveys are set to shape expectations for monetary policy in the weeks ahead.

2025 was marked by shifting policy, geopolitical tension and rapid changes in investor sentiment. While easing inflation and cautious rate cuts supported markets, trade tensions repeatedly triggered volatility. Sharp sell-offs—most notably in April following US tariff announcements—were followed by swift recoveries, underscoring market resilience. The year reinforced the value of diversification, discipline and a long-term approach as leadership rotated across regions, sector